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FPTUFS Scheme – Food Processing Industry


FPTUFS Scheme – Food Processing Industry

The Food Processing Industry Technology Upgradation Fund Scheme or FPTUFS aims at up gradation of processing capabilities of sectors in food processing viz., fruits and vegetables, milk products, meat, poultry, fishery, cereal /other consumer food products, oilseed products and other agri-horticultural sectors including food flavours, colours etc.

Food Processing Industry

India is a rich agriculture resource base, ranked No.1 in the world in 2013 in terms of production of bananas, mangoes, papayas, chick peas, ginger, lemons & limes, whole fresh buffalo milk, goat milk and buffalo meat. No.2 in the world in the production of sugarcane, dry beans, lentils and safflower oil. No.3 in the production of cabbages, cashew nuts, cauliflower, coconuts, garlic, onions, green peas, potatoes, rice paddy, tea, wheat and tomatoes. With a population of over 1.25 billion people and growing, the food processing industry holds massive potential for decades to come.

FPTUFS Scheme Eligibility

Processing industries in fruits & vegetables, milk products, meat, poultry, fishery, cereal/other consumer food products, oilseeds products, rice milling, flour milling, pulse processing and such other Agri horticultural sector including food flavours and colours, oleoresins, spices, coconut, mushrooms and hops are eligible for the FPTUFS scheme. Aerated water, packaged drinking water, and soft drink plants would not be eligible.

Grant under FPTUFS

Under the FPTUFS scheme, grant of 25% of the cost of plant & machinery and technical civil works subject to a maximum of Rs.50 lakhs in general areas and 33% up to Rs.75 lakh in difficult areas is available. States like Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, North-Eastern States, Andaman & Nicobar Isalands, Lakshwadeep and Integrated Tribal Development Project areas have been classified under difficult areas.

Grant is available under FPTUFS scheme only for new plant and machinery. Also, technical civil works would included only civil works for functional purposes. Civil work in terms of boundary wall, office building, guest house, canteen and roads would not be eligible for grant.

Availing FPTUFS Grant

Application for the grant should be submitted to the Bank (State Bank of Hyderabad) along with the application of credit facilities or before commencement of commercial production. The grant will be sanctioned by the Bank and request application for release of the grant will be sent to the Ministry of Food Processing Industry online through e-portal.

The FPTUFS subsidy / grant will be released in two installments as follows:

  • 1st installment – After utilization of 50% of Term loan or 50% of promoters contribution.
  • 2nd installment – After utilization of 100% Term Loan or 100% Promoters contribution.

Mega Food Parks

FPTUFS scheme grant can be availed to setup a food processing unit in a mega food park being setup in India. 42 mega food parks are being set up in Public Private Partnership (PPP) at an investment of INR 98 Billion. The parks have around 1,200 developed plots with basic infrastructure enabled that entrepreneurs can lease for the setting up of food processing and ancillary units.

Learn more about subsidy for cold chain in India.